As the the remaining lease term of a Ilkeston domestic lease decreases so does its value and therefore the value of your property. If the residual term has, over 100 years remaining then this decrease may be fractional however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner than later. Most flat owners in Ilkeston will qualify for this right; however a conveyancing solicitor can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Ilkeston with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Ilkeston can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Ilkeston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy discussions with the landlord of her first floor flat in Ilkeston, Freya initiated the lease extension process as the eighty year deadline was swiftly approaching. The lease extension was concluded in October 2013. The landlord’s fees were kept to an absolute minimum.
Ms F Adams purchased a studio flat in Ilkeston in June 2012. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparative residencies in Ilkeston with an extended lease were worth £257,800. The average amount of ground rent was £65 collected quarterly. The lease finished in 2091. Given that there were 65 years remaining we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including fees.
Last Autumn we were phoned by Mr and Mrs. K Lambert , who purchased a one bedroom apartment in Ilkeston in February 2010. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar flats in Ilkeston with 100 year plus lease were valued about £191,400. The mid-range ground rent payable was £55 invoiced quarterly. The lease expired in 2080. Given that there were 54 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 not including fees.